The high foreign exchange value of the U.S.dollar in the early 1980s can best be explained by
A) additional investment funds made available from overseas.
B) lack of investor confidence in U.S. fiscal policy.
C) market expectations of rising inflation in the United States.
D) American tourists overseas finding costs increasing.

Question

Quizplus · Accepted Answer

The high value of the U.S. dollar in the early 1980s was due to additional investment funds made available from overseas, as foreign investors saw the U.S. as a safe and profitable place to invest their money. This increased demand for the U.S. dollar, driving up its value on the foreign exchange market.

The High Foreign Exchange Value of the U